1.

Constitutional and statutory basis

1.1 Consti. Art. 2. 9 - 14

Section 9. The State shall promote a just and dynamic social order that will ensure the prosperity
and independence of the nation and free the people from poverty through policies that provide
adequate social services, promote full employment, a rising standard of living, and an improved
quality of life for all.

Section 10. The State shall promote social justice in all phases of national development.

Section 11. The State values the dignity of every human person and guarantees full respect for
human rights.

Section 12. The State recognizes the sanctity of family life and shall protect and strengthen the
family as a basic autonomous social institution. It shall equally protect the life of the mother and the
life of the unborn from conception. The natural and primary right and duty of parents in the rearing
of the youth for civic efficiency and the development of moral character shall receive the support of
the Government.

Section 13. The State recognizes the vital role of the youth in nation-building and shall promote
and protect their physical, moral, spiritual, intellectual, and social well-being. It shall inculcate in the
youth patriotism and nationalism, and encourage their involvement in public and civic affairs.

Section 14. The State recognizes the role of women in nation-building, and shall ensure the
fundamental equality before the law of women and men.

Section 18. The State affirms labor as a primary social economic force. It shall protect the rights
of workers and promote their welfare.

Section 20. The State recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to needed investments.

1.2 Consti. Art. 3 sec 10 and 18

Section 10. No law impairing the obligation of contracts shall be passed.

Section 18.

1. No person shall be detained solely by reason of his political beliefs and aspirations.
2. No involuntary servitude in any form shall exist except as a punishment for a crime whereof the
party shall have been duly convicted.

1.3 Consti. Art. 13 sec 3

Section 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with
law. They shall be entitled to security of tenure, humane conditions of work, and a living wage.
They shall also participate in policy and decision-making processes affecting their rights and
benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers
and the preferential use of voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster industrial peace.

The State shall regulate the relations between workers and employers, recognizing the right
of labor to its just share in the fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.

1.4 Labor code, art. 112

Art. 112. Non-interference in disposal of wages. No employer shall limit or otherwise interfere
with the freedom of any employee to dispose of his wages. He shall not in any manner force,
compel, or oblige his employees to purchase merchandise, commodities or other property from
any other person, or otherwise make use of any store or services of such employer or any other
person.

1.5 Civil code, Art. 1700

Art. 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or
delay, and those who in any manner contravene the tenor thereof, are liable for damages.
(1101)